Customers declaring their own identity (self-attestation)

In limited circumstances, if you can’t establish the identity of a customer in any other way, you may be able to accept a customer’s self-attestation (statement) of their identity as a last resort. This might be because the customer:

• is experiencing homelessness
• is experiencing or has experienced family or domestic violence
• is a refugee who has arrived in Australia without identity documents
• doesn’t have any independent and reliable identity documents because the documents have been lost in a fire, flood or a natural disaster
• can’t nominate an independent referee who meets your customer identification requirements.

You must not rely on self-attestation if you know or suspect that it is incorrect or misleading.

You must continue to apply ongoing customer due diligence measures, including monitoring, to manage and mitigate the ML/TF risk when customers attest to their own identity. You should also take steps to verify the customer’s identity when practical – for example, by requiring customers to supply identification documents confirming their identity within an agreed period of time.

Allowing additional time to provide standard identity documents

You may use alternative forms of identification to assist customers where they need timely access to financial services but require more time to provide standard identity documents.

For example, some customers such as those affected by a natural disaster, family and domestic violence, or other adverse circumstances may not have access to standard identification documents in the short term. They may have to reapply for lost identity documents or wait for their original documentation to be replaced or updated.

You may instead rely on alternative forms identification to verify the customer information. You should request that the customer provide, where appropriate, the standard identification and verification documents as soon as it becomes available, having particular regard to their specific circumstances and any barriers they may reasonably face.

You must apply a higher level of ongoing customer due diligence and transaction monitoring to the customer’s account until standard identification and verification can be undertaken.

Applying this flexible approach to Aboriginal and Torres Strait Islander customers

Aboriginal and Torres Strait Islander peoples face more barriers to accessing financial services than non-Indigenous Australians. There are many historical and contemporary reasons for the challenges experienced by Aboriginal and Torres Strait Islander customers.

AUSTRAC recommends that you develop and maintain procedures to help you identify and verify Aboriginal and Torres Strait Islander customers who don’t have standard identification. You should consider providing the option for your customers to advise you if they identify as Aboriginal and Torres Strait peoples, so you can determine when your flexible approach may be required and is appropriate.

We encourage you to adopt a flexible approach that is mindful of Aboriginal and Torres Strait Islander people’s historical, social and cultural circumstances, so that they are not denied access to financial services.

Alternative customer identification such as a referee statement is not required where the customer can produce a standard form of photo identification such as a current driver’s licence.

Alternative forms of identification documents and options for Aboriginal and Torres Strait Islander customers may include, for example:

• a referee statement
• an indigenous community identity or organisation membership card
• correspondence from a government authority that shows the customer's name.

There may also be other sources that you can use to independently verify the customer’s identity.

Indigenous community identity or organisation membership card

You should consider whether the customer has been issued with an indigenous community identity card – these cards have been developed by community organisations to assist with identification requirements. These cards generally include the person’s name, other birth names, address, date and place of birth. They may or may not include a photo.

However, it is important to note that not all communities issue these cards, so you should have additional processes in place to identify and verify customers.

Community membership cards often contain less personal information because they are designed to assist in assessing and exercising cultural rights.

Who can provide a referee statement

Examples of suitable referees for Aboriginal and Torres Strait Islander customers may include:

• a religious official
• a community leader or recognised Elder
• a school principal, teacher or school counsellor
• Services Australia (Centrelink) staff
• a police officer
• the customer's current employer or manager
• a financial counsellor or financial capability worker
• a legal aid or community lawyer
• another person qualified to witness a statutory declaration
• a health professional or practitioner in an Aboriginal or Torres Strait Islander Medical Service or any mainstream medical services
• an official from an Aboriginal or Torres Strait Islander organisation, or a board member of a locally relevant Aboriginal Land Council.

Some service providers in remote communities may be able to incorporate a photograph of the customer into a statement to confirm the identity of the customer, using the letterhead stationery of the organisation. Where appropriate, you may consider such a reference a suitable alternative for a formal photographic identification document.

Examples

These examples show how you can identify and verify Aboriginal and Torres Strait Islander customers who don’t have standard forms of identification.

Example 1: Opening an account

Customer A wants to open an account with the Careful Credit Union but doesn’t have the usual forms of identification that the credit union requires to verify a customer’s identity. Customer A explains that his identity documents use a different name because he lives in a community where he is known by a different name.

Careful Credit Union assesses the ML/TF risk of providing this designated service (opening an account) to Customer A as low. Careful Credit Union advises Customer A of additional information he could provide to verify his identity, in accordance with their AML/CTF program.

Later, Customer A produces a referee statement from an Elder from his community that includes a recent photograph, confirms his current name and address and includes details of the name by which he was previously known.

The credit union reviews and verifies the referee statement of Customer A by directly contacting the referee and following confirmation of the information provided completes the verification processes. Customer A agrees to provide the new identification documents in his name immediately upon receipt. Having obtained his new identification documents, Customer A provides these details and Careful Credit Union opens a personal account.

Example 2: Superannuation beneficiary

Customer B identifies as being of Aboriginal heritage and is the beneficiary of a death benefit on her mother’s superannuation policy after she recently passed away.

In accordance with cultural practices, Customer B changed her name after her mother died and her full name is now different to the name recorded on the beneficiary nomination form.

Noting that the details of the beneficiary is inconsistent with the information originally provided to Nest-Egg Superannuation Fund, the reporting entity reaches out to Customer B seeking clarification before progressing the request. Customer B advises that she has changed her name since she was first nominated as the beneficiary of her mother’s superannuation fund. Nest-Egg Superannuation Fund asks for information about Customer B’s name change as part of its identification and verification processes.

Customer B advises Nest-Egg Superannuation Fund that it is customary not to use the name of a deceased person. She also doesn’t have any official ID in her new name. She has provided her name and address to Nest-Egg Superannuation Fund but doesn’t know her actual date of birth – only the year and where she was born.

Nest-Egg Superannuation Fund assesses the ML/TF risk of providing the relevant designated services to Customer B as being low acknowledging that despite having a different name, the daughter is the only nominated beneficiary and offers to verify Customer B’s identity with a referee statement from an acceptable referee. Customer B informs Nest-Egg Superannuation Fund that her late mother’s doctor is also her doctor and can provide a reference about their relationship. In the reference, the doctor attaches a recent photograph of Customer B and includes details of her circumstances including the change of name in accordance with cultural practice. Nest-Egg Superannuation Fund contacts the doctor to discuss the reference and supporting information enabling it to verify her identity.

Example 3: Inconsistent identification documents

Customer C resides in New South Wales and wants to open a bank account with the Happy Returns Bank. He provides the bank with a range of identification documents from various government departments to prove his identity, however, his name and dates of birth are inconsistent.

Customer C isn’t sure which birth date is accurate and the bank isn’t sure which document, if any, it can use to identify him.

Happy Returns Bank assesses the ML/TF risk of providing a designated service to Customer C as low and decides to accept an alternative document to verify Customer C's identity. It asks Customer C for copies of the government documents.

The bank officer asks the customer if he is a member of an Aboriginal land council. The customer confirms he is a member of a NSW Local Aboriginal Land Council (LALC). The bank officer suggests that the customer obtains a reference from a current office bearer of the local LALC, which states that he is the person named in the documents. The LALC officer provides a reference on LALC letterhead that includes a photograph of Customer C. The bank reviews this information and after contacting the referee and confirming the information contained in the reference, confirms the customer’s identity.

Note: Aboriginal land council membership varies across States and Territories, and not all customers will be connected to one of these entities. AUSTRAC recommends that where applicable, you educate your staff on the Aboriginal land councils that exist in the areas where you operate so you can have informed questions and understand the needs of customers.

Applying this flexible approach to customers affected by family and domestic violence

It is critical for the safety of people affected by family and domestic violence to have access to financial services separate from the individual who is perpetrating the abuse. We encourage you to adopt a flexible, sensitive and compassionate approach to assisting these customers.

These customers may have identification documents that have expired or have different addresses, or lack of access to any identification documents in the short term. You may need to use other reliable and independent means of alternative identification such as a referee statement.

Examples

Example 1: Customer needs to obtain new identification documents

Customer D is experiencing domestic violence. Her partner does not allow her to have access to a bank account and withholds her identification documents. She recently fled to a domestic violence refuge without any identification documents and needs to open a bank account urgently in order to receive government income support. 

Replacing each of Customer D’s identification documents takes over four weeks to process and often requires a form of supporting identification, which is difficult and time-consuming. It could take months for her to get enough identification documents to open a bank account. She is also experiencing delays obtaining the new identification documents because she is living at a temporary address.

The refuge director provides a written reference to the bank. After contacting the referee to discuss and confirm the information provided, the bank assesses the ML/TF risk of providing Customer D with the designated service as low and opens the bank account, with a requirement that Customer D further ratify her identity when she receives her new identification documents.

Example 2: Customer unable to obtain identification documents

Customer E is living with her brother who controls her finances and prevents her from working. She decides to flee her home and move into temporary accommodation.

A social worker goes to the bank with Customer E to open a new bank account so she can receive Centrelink payments. She doesn’t have any identification documents, but has photos on her phone of her passport and driver’s licence that shows her previous address.

The bank assesses the ML/TF risk of providing Customer E with the designated service as low and approves opening the account based on the photos. The bank requests that Customer E provide her identification documents as soon as she is able.

The police take her to her former home to retrieve her belongings and identification documents. She returns to the branch two weeks after the account is opened and completes the standard identification checks.

Example 3: Using alternative identification

Customer F has left an abusive relationship and is staying at a friend’s home. She needs a bank account to receive a grant which will allow her to relocate to her parents’ home interstate.

Customer F doesn’t have any identification documents. She obtains a reference from her general practitioner of several years who is familiar with her situation. The bank assesses the ML/TF risk of providing Customer F with the designated service as low and uses the reference as a basis for opening the account.

Applying this flexible approach to customers affected by a natural disaster

Customers who have been affected by a natural disaster may have suffered significant losses or damage. We encourage you to adopt a flexible, sensitive and compassionate approach to assist these customers.

These customers may lack access to any identification documents or their documents may have been destroyed. It can take time to piece together information and reapply for identity documents. You may need to use reliable and independent means of alternative identification such as a referee statement or letter from a government agency.

Example: Customers’ identification documents are destroyed

Customers G and H are a married couple who operate a mixed farming enterprise. A major bushfire impacted their region and like many of their neighbours the family lost their home, surrounding buildings, farm machinery, fencing and stock.

The fire destroyed all of their personal and business documents including all forms of personal identification, preventing them from accessing their bank accounts, in particular, the receipt of special Government disaster relief payments.

After visiting the nearest branch of their bank, and mindful of the hardship endured, the bank requests that Customers G and H provide evidence of the receipt of disaster payments. In the absence of any primary and secondary identification documentation, they obtain a referee’s statement confirming their personal details and circumstances.

A local police officer witnesses a statutory declaration confirming their identities but also that the family had been affected by the bushfire resulting in the loss of property, personal belongs including identification documents.

On production of this information, the bank made arrangements to enable the family to access their bank accounts. Customers G and H agreed to provide details of their standard forms of identification once they are replaced.

Applying this flexible approach to customers who are incarcerated or to be released from prison

In various state and territories, correctional services require prisoners to hold a bank account prior to their release from prison in order to receive a Services Australia crisis payment.

Standard forms of identification for prisoners are either stored with any other personal property or remain with family, making access to bank accounts difficult to negotiate.

In some states and territories, the relevant correctional services department may issue photographic identification to assist persons transitioning out of the prison system. In some cases, it is necessary for the customers to engage financial counsellors who work with prisoner case workers and reintegration officers to assist in opening a bank account. 

Example: Customer will soon be released from prison

Customer J is scheduled to complete their prison sentence and be released in two weeks, and will receive a Service Australia crisis payment. However, her bank account was closed during their period of incarceration.

Customer J cannot access any identification documents because the prison has locked them in secure storage, and obtaining a proof of age card will take a minimum of five weeks to process.

A financial counsellor who is familiar with Customer J’s situation, having worked with her for a period of twelve months while she has been incarcerated, agrees to provide a written reference.

Having reviewed the reference and spoken directly with the financial counsellor, the bank agrees to open a new account to ensure receipt of the Services Australia crisis payment. 

Applying this flexible approach – intersex, transgender and gender diverse customers

Customers who are intersex, transgender or gender diverse people may not have accurate forms of identification for a range of reasons, including financial hardship. For example, the costs involved in updating name and gender records on a birth certificate and other standard forms of identification can be prohibitive.

Customers who do not have identification documents that match the individual’s name and gender may result in misgendering, and this can have a traumatic impact on the person. This can be a complex area, and ensuring that your staff maintain accurate customer records and file notes will make sure that your customers do not have to explain their gender again in future interactions.

Example 1: Customer obtains new identification documents

Customer K is a trans man and uses pronouns he/him. Customer K obtained a declaration from his general practitioner verifying his identity and affirming his gender and successfully updated his name and gender in his passport and birth certificate.

He provides the new passport and birth certificate to a financial institution that he banks with and asks that they update his account details accordingly. After considerable discussion, the financial institution agrees to update the account name (displayed on the debit card and mail).

The financial institution recognises the impact on Customer K’s mental health of receiving correspondence with the former name (also known as ‘dead name’). The financial institution proactively advises Customer K of outstanding items where their correspondence and banking transactions will remain in Customer K’s former name for a period of time.

From this case study, financial institutions should be mindful of the negative impact on customer’s health where gender identity and pronouns are not updated in a timely fashion across all elements of the financial institution, including transaction details. In this case study, the representative demonstrated mindfulness to proactively alert the customer of where this may occur for a period.

Example 2: Staff awareness on gender identity improves the customer experience

Customer L has experienced personal financial hardship and seeks early access to her superannuation fund. Customer L contacts her superannuation fund to inquire about how to access an emergency payment.

Customer L is a trans woman and uses pronouns she/her. She overlooked updating her superannuation fund biographical details from when she established it years ago, which do not align with her gender identity. She contacts her superannuation fund to provide this information.

A new staff member addresses the inquiry who initially considers denying access to the account as they initially suspect that a fraud may be attempted. Following a brief discussion, the staff member identifies the active account under Customer L’s former details. Customer L reveals her current driver’s licence and passport were recently stolen and that she is waiting to receive replacements and is unable to provide copies of these documents to the superannuation fund.

The staff member recalls the induction training they received about gender identity, pronouns and misgendering, while recognising the superannuation fund’s ability to adopt a flexible approach to providing access to financial services.

The staff member works with Customer L to identify documents that meet the superannuation fund’s requirements to progress her application, including a declaration from her general practitioner verifying her identify and an updated signed photograph.

In accordance with the superannuation fund’s record keeping requirements, the staff member makes a note of Customer L’s gender identity and preferred pronouns for when a staff member is next in contact with her either via telephone or written communication. The staff member provides a reference number to Customer L to this record so she does not have to repeat the same information, should she need to call again.